Simulation-based business game for teaching methods in logistics and production

Abstract

Uncertainty in planning tasks such as processing times, set-up times, customer required lead times, due dates, time to failure, time to repair and the complexity in terms of product variety, outsourcing, short lead times, low inventory levels, low costs and high utilization are major hurdles for planning logistics and production processes. This paper introduces a simulation-based business game for methods in planning logistics and production processes. Basic methods such as material requirement planning (MRP), Constant work in progress (Conwip), Kanban, reorder policies, dispatching rules, basic demand forecasting methods and master production schedule (MPS) are implemented in the game. Due to the generic environment additional methods can be implemented efficiently. The midterm planning concept sales and operations planning (S&OP) is implemented as well, where the gamers have to act as managers responsible for purchasing, production, sales and finance. Their target is to identify sales and production volumes for the next planning periods.